Financial PlanHealth InsuranceTerm Plan

How to Increase Coverage with Term and Life Insurance Riders

Life is uncertain, and the best ways to protect yourself and your loved ones are through life insurance and term insurance plans. A life insurance plan will protect you from the biggest uncertainty of life—death. It provides financial assistance to your loved ones in case something untoward happens to you. Moreover, it also provides a maturity benefit in case you survive the policy term. Life insurance riders offer additional coverage on your plan at an extra cost. On the other hand, a term plan entitles the nominees of the policyholders to receive the sum assured in case the policyholder passes away suddenly during the tenure of the policy. However, if the policyholder survives the term, he is not entitled to any maturity benefit. A term plan comes with a number of riders, which provide additional coverage at a higher premium amount. This coverage is over and above the benefits offered by the main plan. It is important to consider term insurance riders in order to enhance the coverage of your policy and get the maximum out of the premium amount you pay.

Important additional riders with their benefits

Mentioned below are some of the most common riders available for you. Consider your health and financial requirements before making a decision about choosing one.

Also Read: How to Buy Term Insurance for Smokers

 Critical illness rider

 This rider entitles the policyholder to get extra coverage in case of any critical illness. In the event of diagnosis of any life-threatening illness, the sum assured will be paid to the policyholder. There is a pre-declared list of such illnesses, against which one can seek protection. Given the increasing number of diseases across the country, this rider is an ideal addition to the policy.

 Accidental death benefit

This rider entitles the nominees of the policyholder to receive benefits in addition to the sum assured in their main plan. In case of demise due to an accident, the nominees will receive the benefits from this rider.

 Waiver of premium

 This is a crucial rider for term insurance coverage. It contains a feature that entitles the policyholder and the nominees to receive an insurance cover without the requirement of paying premiums in case of pre-defined conditions. This cover will continue to be in effect but the remaining premiums will be waived off.

Accidental disability rider

This is a life insurance rider, which entitles the nominees of a policyholder to receive benefits in addition to the main plan. In case of a disability due to an accident, the rider will provide a benefit to the nominees.

Income rider

 This is a very important term life insurance rider. It entitles the nominees of the policyholder to receive a specific sum as a fixed income in case of the demise of the policyholder during the term of the plan.

Also Read: Why is Insurance Premium Costly for Smokers?

 Accelerated death benefit rider

 This rider has a feature, which entitles the nominees of the policyholder to receive an additional benefit in the event of the demise of the policyholder due to a pre-existing condition.

It is advisable to invest in term life insurance riders because they offer a comprehensive cover at a low cost. Consider your personal requirements and choose a rider that is most suitable for you.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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